Luna classic (LUNC), the native token of the old Terra blockchain, has risen by well over 300% in the past 30 days after entering what looks like a parabolic rally. But with such a massive rally now behind it, is there still time left to buy?
As of 10:05 UTC, LUNC is up 302% for the past 30 days, trading at a price of USD 0.000403. Over the past 7 days, the gain is 205%, while a whopping 40% has been gained in the past 24 hours alone.
LUNC price past 30 days:
The surprisingly strong rally for LUNC comes after Terra Classic developers on August 27 activated staking for the token, with approximately 8.5% of circulating tokens now being staked, according to the LUNC Burner website. The staking ratio is up significantly from just 2.6% of supply at launch.
For now, the yield that can be earned for staking LUNC stands at a whopping 37.8%, making it one of the most profitable coins to stake, data from StakingRewards.com said.
Token burn is pulling in the LUNC buyers
In addition, a token burn mechanism has also been implemented, which has helped send LUNC prices soaring.
And with both staking and a token burn mechanism now in place, stronger demand for the token could be in the cards, some believe.
The new burn mechanism was pointed by some users on Twitter, with for instance the popular crypto Twitter user and podcast host Luke Martin saying last week that the supply burn has generated “ridiculous numbers.”
Others, such as the popular Twitter user and crypto analyst Miles Deutscher, pointed to the LUNC rally as evidence that money can still be made during bear markets. “LUNC is one of the many examples that proves it is still possible to make huge returns during a bear market,” Deutscher said.
At the same time, the LUNC rally looks solid from a technical analysis standpoint, with no major resistance levels ahead now that price has overtaken the previous high at USD 0.0004.
LUNC has left LUNA far behind
Meanwhile, another notable development is that LUNC by far has overtaken LUNA, the native token of the new Terra chain, in terms of market capitalization. Per CoinGecko’s ranking, LUNC is now the 27th most valuable cryptoasset by market cap, while LUNA ranks as number 127.
According to CoinGecko’s data, LUNC’s market cap is now close to reaching the USD 3bn mark, while LUNA’s market cap stands at just over USD 330m (or USD 0.3bn).
The rally for LUNC is believed to be fueled by speculation that its price could approach levels seen before the infamous collapse of the Terra ecosystem back in May this year, when the Terra-based stablecoin terraUSD (UST) lost its peg.
In early May, before Terra’s collapse, LUNA traded around USD 80, and was seen by some as one of the most promising major coins in the market. During the collapse, the token fell to around USD 0.05 – a near total price collapse in a matter of two weeks.